Henry Harteveldt, founder of the Atmosphere Research Group, says the UAL pilots contract extension shows United needs a strong working relationship with its pilots, as it aims to boost reliability.
Airlines dealing with some big winter storms here in the United States and the other male club biggest from the united where pilots approved a new contract extension. They can't 820 Q percent raise by 2018. Joining me with more from our San Francisco bureau is travel industry expert Henry heart about. He's also the founder of the atmosphere research group rate caddies are. Thank you very much our first call in his big storms happening what's your take on the impact. The impact it's going to be substantial. More than fifteen million people will be affected in terms of the city's. And it's hitting big big airport markets Washington Philadelphia New York. It. Could not have happened at a worse time it's. January travel and it's just dark and be pretty that you cannot sugarcoat this. Let's also talk about the united situation they did have a pilot ratify contract extension why does this so closely watched it like that keeping here. Well the key thing is you have peace at united labor peace is critical. Happy pilots. Mean a good girl line. If the pilots are pleased with the contract they operate the airline on time and that's good for the traveling public. But and again it is six that this is going to make it cost the airlines right. Well yes over the course of the contract. The pilots will earn 22%. Increase in there are compensation. N if Delta Air Lines has a better contract pilots will earn what Delta's pilots her so yes that's expensive. But at what is the cost of unhappy pilots that don't show up for work but don't push to operate the airline on time. It's much better for united at this contract in place. In fact around that you talk about has been a parties since that USC. Started out coming back we believe. Oscar Nunez has to govern actually been temporarily. It has been in his very focused on the culture he knows that the culture is critical to having unified united. And part of that culture is. Includes the pilots with the contract humans to get the flight attendants signed up with a new contract. So he's really working on these things to bring. Both the former continental and United Airlines groups together. That's a pretty well received by the market the stock has Diane is the second related beaten up before. With it on and that's. Well I'm not a stock analysts I don't election comment on that but it would say is that yesterday we saw that in order forty Boeing 730 sevens. We saw them announced record profits they have this extension to the pilots' contract in place. Lots of positive momentum in the united and that would be. I think a good thing for its stakeholders including those who might consider an investment. For consumers and. Well what's good about this for consumers is one these new 730 sevens will replace smaller fifty seat airplanes. They'll be more comfortable. So that's a good thing. They're larger that means more potential for more discount Ayers that's always a good thing. They're more reliable and again when you have any culture of people who are happy with what they do. Hopefully customer service improves reliability improves and people prefer to fly united. He's them. Pleasure. And Henry art out of the atmosphere research I've gotten about as writers.